Valley Spa Purchased $7,800 in Plumbing Components from Tubman Co

Valley Spa purchased $7,800 in plumbing components from Tubman Co.Valley Spa signed a 60-day,10% promissory note for $7,800.If the note is dishonored,but Tubman intends to continue collection efforts,what is the journal entry to record the dishonored note? (Use 360 days a year.)

A) Debit Accounts Receivable $7,930; debit Bad Debt Expense $130; credit Notes Receivable $8,060.
B) Debit Bad Debt Expense $7,930; credit Accounts Receivable $7,930.
C) Debit Bad Debt Expense $7,800; credit Notes Receivable $7,800.
D) Debit Accounts Receivable−Valley Spa $7,800; credit Notes Receivable $7,800.
E) Debit Accounts Receivable−Valley Spa $7,930,credit Interest Revenue $130; credit Notes Receivable $7,800.